On Thursday, June gold futures settled at Rs 72,683 per 10 grams while May silver futures settled at Rs 83,851 per kilogram with a gain of 1 .25%. Gold is expected to trade with a positive bias in the near term unless geopolitical tensions ease.
Data on the progress of US retail sales (March) blew up the numbers across the board, with overall retail sales up 0.70% compared to forecasts of 40%, previous data having been revised upwards to 0.90% against 0.60% announced earlier. US yields hit their highest levels in 2024, sending gold to the day’s low of $2,325. However, the yellow metal rallied sharply due to concerns over Israel’s retaliation to Iran’s attack, with the former apparently intending to give a befitting response to the latter’s aggression.
Spot gold closed with a gain of around 1.80% at $2,388, with its intraday swings amounting to over $100.
Today, the US Dollar Index, DXY, was hovering near the 106.24 mark, up 0.09 or 0.08%.
“Gold prices have risen above $2,400 per ounce due to increased demand for a safe investment amid escalating tensions between Israel and Iran. The price of gold rose 1.3% and is on track for its fifth consecutive weekly rise, influenced by unconfirmed reports of explosions in Iran, Syria and Iraq. This rise in gold prices coincides with increased rhetoric following a drone and missile strike, with Iran warning of attacks on its nuclear facilities and threatening retaliation,” said Neha Qureshi, Senior Technical Analyst and derivatives at Anand Rathi Commodities & Currencies. While data suggests that interest rates remain high, generally discouraging investment in non-interest-bearing assets like gold, geopolitical uncertainties have continued to strengthen gold’s appeal. Additionally, strong demand from Chinese central banks and consumers has supported the upward trend in gold prices. Spot gold rose 1.1 per cent to $2,404.95 per ounce in early trading in Singapore,” added Neha Quereshi.
On the daily chart, June gold futures formed a bearish engulfing candlestick pattern, suggesting a potential slowdown. The Relative Strength Index (RSI) has entered overbought territory and is showing negative divergences, supporting the bearish outlook. The main resistance levels to watch are at 73,300 and 73,958, while support levels are at 72,020 and 71,700, it said.
Intraday Trading Strategy by Quereshi:
– Sell MCX JUNE Gold futures at Rs 72700 with a stop loss of Rs 73200 and a price target of Rs 72000
– Sell MCX MAY Silver futures at Rs 83300 with a stop loss of Rs 84300 and a price target of Rs 81300
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
On Thursday, June gold futures settled at Rs 72,683 per 10 grams while May silver futures settled at Rs 83,851 per kilogram with a gain of 1 .25%. Gold is expected to trade with a positive bias in the near term unless geopolitical tensions ease.
Data on the progress of US retail sales (March) blew up the numbers across the board, with overall retail sales up 0.70% compared to forecasts of 40%, previous data having been revised upwards to 0.90% against 0.60% announced earlier. US yields hit their highest levels in 2024, sending gold to the day’s low of $2,325. However, the yellow metal rallied sharply due to concerns over Israel’s retaliation to Iran’s attack, with the former apparently intending to give a befitting response to the latter’s aggression.
Spot gold closed with a gain of around 1.80% at $2,388, with its intraday swings amounting to over $100.
Today, the US Dollar Index, DXY, was hovering near the 106.24 mark, up 0.09 or 0.08%.
“Gold prices have risen above $2,400 per ounce due to increased demand for a safe investment amid escalating tensions between Israel and Iran. The price of gold rose 1.3% and is on track for its fifth consecutive weekly rise, influenced by unconfirmed reports of explosions in Iran, Syria and Iraq. This rise in gold prices coincides with increased rhetoric following a drone and missile strike, with Iran warning of attacks on its nuclear facilities and threatening retaliation,” said Neha Qureshi, Senior Technical Analyst and derivatives at Anand Rathi Commodities & Currencies. While data suggests that interest rates remain high, generally discouraging investment in non-interest-bearing assets like gold, geopolitical uncertainties have continued to strengthen gold’s appeal. Additionally, strong demand from Chinese central banks and consumers has supported the upward trend in gold prices. Spot gold rose 1.1 per cent to $2,404.95 per ounce in early trading in Singapore,” added Neha Quereshi.
On the daily chart, June gold futures formed a bearish engulfing candlestick pattern, suggesting a potential slowdown. The Relative Strength Index (RSI) has entered overbought territory and is showing negative divergences, supporting the bearish outlook. The main resistance levels to watch are at 73,300 and 73,958, while support levels are at 72,020 and 71,700, it said.
Intraday Trading Strategy by Quereshi:
– Sell MCX JUNE Gold futures at Rs 72700 with a stop loss of Rs 73200 and a price target of Rs 72000
– Sell MCX MAY Silver futures at Rs 83300 with a stop loss of Rs 84300 and a price target of Rs 81300
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)